The Gorakhdam Express train accident of Monday – in which at least 25 people lost their lives and many more were injured – has set the agenda for former Karanataka Chief Minister DV Sadananda Gowda, who took charge as Railway Minister on Tuesday.
Creating a safe railway network will be key for Gowda. On his first day, the Railway Minister called for a high-level meeting on rail safety.
But putting in place upgraded systems will cost a lot of money: almost ₹1 lakh crore, according to the estimates of a high-level safety review committee headed by Anil Kakodkar, former Chairman of the Atomic Energy Commission, with ‘Metroman’ E Sreedharan as adviser.
The Kakodkar Committee, in 2012, had suggested imposition of a safety cess on rail tariffs as a means to raise funds for improving railway safety. This is on the lines of safety surcharge of ₹1-100 levied on rail fares during the National Democrattic Alliance regime under Atal Bihari Vajpayee.
Fuel costs One of the foremost issues that Gowda will have to address is to tackle increasing fuel costs for the Railways — either though a fare hike or by getting higher budgetary support.
In 2013-14, the total fuel cost for the Railways shot up to ₹28,471 crore, up 28 per cent from ₹22,282 crore in the previous fiscal. Of the total increase in fuel costs through 2013-14, the increase in fuel charges only till July (first four months) was covered by the fare hike in October 2013. The recent attempt by the Indian Railways to increase fares were rolled back after directions from former Minister Mallikarjun Kharge. Lowering cross-subsidisation between freight and passenger services, while ensuring clean and punctual services, is another challenge. Some of it may be attended through a rail tariff regulator.
Expanding services Gowda will also have to make funds available for building newer lines, identified on priority basis. The Railways have pending projects that run into lakhs of crores of rupees.
While there are many more challenges, here is one that Gowda should take up, by virtue of being the Railway Minister from a party that has a majority. He should restructure the Railways in such a manner that departmental rivalry does not work against the system.